Baladi Poultry Company signed Al-Munajem Food , one of the largest food companies in the Kingdom, last Thursday
Details of the agreement and partnership
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company clarified that the agreement stipulates that Al-Munajem Food Company will handle the marketing and distribution of Baladi's poultry products. This partnership includes distributing the products in local markets within the Kingdom of Saudi Arabia, as well as expanding into international markets, thus opening new export opportunities for the national product.
The memorandum of understanding and agreement extends for seven years , a period reflecting the desire to build a long-term and stable business relationship. The agreement primarily aims to promote sustainable mutual growth for both parties and increase the market share of local products in Saudi Arabia, while maintaining high quality standards and outstanding operational efficiency.
The context of food security and Vision 2030
This agreement takes on particular significance when viewed within the context of the Kingdom's Vision 2030 , which prioritizes food security. The Kingdom is actively working to increase its self-sufficiency in poultry meat, with government plans aiming for advanced levels of domestic production to reduce reliance on imports. Partnerships between local producers (such as Baladi Poultry) and major distributors (such as Al-Munajem Foods) are a cornerstone for achieving these national objectives, ensuring the efficient and rapid distribution of local products to all regions of the Kingdom.
Strategic integration and logistical capabilities
From an economic and operational standpoint, this partnership reflects a model of strategic integration. Baladi Poultry Company represents the producer, focusing on agricultural and production processes, while Al-Munajem Food Company provides the strong marketing and logistics arm. Al-Munajem possesses an extensive distribution network and advanced refrigeration and storage infrastructure, ensuring the preservation of poultry quality and its delivery fresh to the end consumer. This integration will enhance operational efficiency and reduce waste, positively impacting supply availability and price stability.
Governance and financial impact
In the interest of transparency and disclosure, the company indicated the presence of related parties in this contract. The Vice Chairman of the Board, Engineer Thamer Abdulaziz Abanmi, has an indirect interest as he serves as the Managing Director of Al-Munajem Food Company. Similarly, Mr. Abdullah Omar Bawazir, a member of the Board of Directors of Baladi Poultry Company, also has an indirect interest as a member of the Board of Directors of Al-Munajem Food Company. Baladi Poultry Company anticipates that this agreement will have a positive financial impact on its results over the contract period, driven by increased sales and improved distribution channels.
